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MCQs

Total Questions : 932 | Page 93 of 94 pages
Question 921. The flow back of profit plus depreciation form a given project is called ___________________?
  1.    Capital recovery
  2.    Cash flow
  3.    Economic return
  4.    Earning value
 Discuss Question
Answer: Option B. -> Cash flow
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 922. The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?
  1.    Expected return
  2.    Nominal interest
  3.    Effective interest
  4.    Economic return
 Discuss Question
Answer: Option C. -> Effective interest
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 923. Capitalized cost of any structure or property is computed by which formula ?
  1.    First cost + interest of first cost
  2.    Annual cost – interest of first cost
  3.    First cost + cost of perpetual maintenance
  4.    First cost + salvage value
 Discuss Question
Answer: Option C. -> First cost + cost of perpetual maintenance
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 924. Gross margin is the ratio of the gross profit to _________________?
  1.    Net sale
  2.    Owner’s equity
  3.    Inventory turnover
  4.    Quick assets
 Discuss Question
Answer: Option A. -> Net sale
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 925. What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product ?
  1.    Stock pile
  2.    Hoard stock
  3.    Buffer stock
  4.    Withheld stock
 Discuss Question
Answer: Option C. -> Buffer stock
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 926. The ability to meet debts as they become due is known as __________________?
  1.    Solvency
  2.    Leverage
  3.    Insolvency
  4.    Liquidity
 Discuss Question
Answer: Option A. -> Solvency
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 927. The ability to convert assets to cash quickly is known as ________________?
  1.    Solvency
  2.    Liquidity
  3.    Leverage
  4.    Insolvency
 Discuss Question
Answer: Option B. -> Liquidity
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 928. What is the basic accounting equation ?
  1.    Assets = liability + owner’s equity
  2.    Liability = assets + owners’ equity
  3.    Owner’s equity = assets + liability
  4.    Owner’s equity = liability – assets
 Discuss Question
Answer: Option A. -> Assets = liability + owner’s equity
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 929. The financial health of the company is measured in terms of______________?
  1.    Liquidity
  2.    Solvency
  3.    Relative risk
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 930. What is an index of short-term paying ability ?
  1.    Price-earnings ratio
  2.    Current ratio
  3.    Profit margin ratio
  4.    Gross margin
 Discuss Question
Answer: Option B. -> Current ratio
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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